Slide 1: Financial Results for FY2/23 and Long-term Management Plan
Financial Results for FY2/23 and Long-term Management Plan April 4, 2023 1
Slide 2: Contents
Contents 1. FY2/23 Financial Results P3-15 2. FY2/24 Policy P17-23 3. Medium-term Management Plan 2024 Updated P25-27 4. Long-term Management Plan 2030 Policy P29-37 5. Approach to ESG Issues P39-43 2
Slide 3: Consolidated Results: Income Statement
1. Consolidated Results: Income Statement ▽ Sales increased by 5.6% YoY. Record-high for Q4 alone and for the full year. ▽ SG&A to sales ratio was 25.6% (▲ 0.2 ppt. YoY). Controlled expenses by improving the efficiency of advertising and promotion activities. ▽ Operating income was 53.3 billion yen
Slide 4: Sales by Business ①
2. Sales by Business ① ▽ Domestic sales rose by 5.4% YoY through enhancement of brand power, expansion of influencer projects and character products, diversification of sales promotion methods, and regional response. ▽ In Si meng le (Taiwan), we reinforced product and sales capabilities against exte
Slide 5: Sales by Business ②
2. Sales by Business ② ▽ In the 3 core businesses, sales per existing-store rose further. ▽ Net sales per existing-store rose to about 320 million yen in the Shimamura business, and rose to about 190 million yen in the Avail business. The operating income margin rose to 5.0% in the Avail business. *
Slide 6: Consolidated Results: SG&A Expenses
3. Consolidated Results: SG&A Expenses ▽ Personnel expenses: Increased by 5.8% YoY due to wage increases in April. Year-end bonuses are also paid in 4Q. ▽ Advertising expenses: Ratio to sales was 1.9%, restrained by the expansion of digital sales promotions. ▽ Facilities expenses: Utility expenses r
Slide 7: Consolidated Results: Balance Sheets
4. Consolidated Results: Balance Sheets ▽ Assets: Cash and deposits + Accounts receivable + Marketable securities up by 12.5% YoY. ▽ Liabilities: Accounts payable decreased due primarily to higher income taxes payable and accrued consumption taxes. (Million yen/％) Compared to the Compositio Composit
Slide 8: Same-store Sales, Number of Customers, Unit Price (YoY)
5. Same-store Sales, Number of Customers, Unit Price (YoY) ▽ Growth in same-store sales: Continued to strengthen product appeal and sales power, work to meet regional and individual store needs. ▽ Increase in number of customers: Influencer projects, character products, and new categories performed
Slide 9: Gross profit, Price Reduction, Inventory YoY
6. Gross profit, Price Reduction, Inventory YoY ▽ Gross profit: Secured gross profit by reducing discounts by shifting to the new price range. ▽ Discounts: Appropriate inventory control and the use of short-term production to restrain price discounts. ▽ Inventory: The number of inventory declined at
Slide 10: Shimamura Business①
7. Shimamura Business① Strengthening product appeal ▽ Further enhancement of brands: Composition of in-house brands was 31.5% (PB 23. 6%+JB 7.9%). PB sales increased by 19% YoY. Sales of the “CLOSSHI PREMIUM” roughly doubled YoY. ▽ Improvement of JB's planning capability: JB sales increased by 4.7%
Slide 11: Shimamura Business②
7. Shimamura Business② Strengthening sales power ▽ Utilization and diversification of digital sales promotion: Web commercial: 45/+12 YoY (cumulative total). Utilized multiple media such as LINE/YouTube/Twitter. Social media followers: Approx. 34 million. ▽ Strengthened response to individual stores
Slide 12: Avail Business
8. Avail Business Strengthening product appeal and sales power ▽ Strengthening of trend proposals: JB ratio was 38.6%. New JB "Denifits" launched. Strengthened proposals to coordinate wear and fashion goods by expanding the product lineup and changing the sales floor. ▽ Expansion of character produc
Slide 13: Birthday Business
9. Birthday Business Strengthening product appeal and sales power ▽ Expansion of JB products: JB ratio was 26.2%, sales increased by 24.9% YoY. Expanded product lineup and projects. ・Major JB: New project performed well. Large-scale baby care products performed well in collaborative projects with le
Slide 14: Chambre/Divalo Business
10．Chambre/Divalo Business Strengthening product appeal and sales power ▽ Chambre Business: Sales up by 10.4% YoY. Strengthen proposals for JB coordinates. "Gift Marche" received favorable reviews. Sales of wrapping materials are roughly 3 times YoY. ▽ Divalo Business: Strengthen suggestions for coo
Slide 15: EC Business
11. EC Business Expand EC business and improve convenience ▽ Full-year sales: 4.1 billion yen: Expand product lineup through 4 business development. Digital membership: 3,09 million. EC limited influencer projects, character products, and regional-specific products performed well. ▽ Use of digital s
Slide 16: Contents
Contents 1. FY2/23 Financial Results P3-15 2. FY2/24 Policy P17-23 3. Medium-term Management Plan 2024 Updated P25-27 4. Long-term Management Plan 2030 Policy P29-37 5. Approach to ESG Issues P39-43 16
Slide 17: FY2/24: Consolidated Business Forecasts ①
12. FY2/24: Consolidated Business Forecasts ① ▽ Net sales: up by 3.1% YoY, Operating income: up by 2.4% YoY. ▽ Wage increase: Full-time employees 6.5% (5.6% in the previous fiscal year)/ Part-time employees 5.2% (4.6% in the previous fiscal year). ▽ Dividends per share: Annual dividends are expected
Slide 18: FY2/24: Consolidated Business Forecasts ②
12. FY2/24: Consolidated Business Forecasts ② ▽ In all businesses, same-store sales and total store sales are expected to exceed the previous fiscal year. Increase regional share by increasing customer numbers and increase sales per existing store. ▽EC Business: Net sales 5 billion yen (up 20.7% YoY
Slide 19: FY2/24: Management Policy
13. FY2/24: Management Policy A unified theme "Re-Born Final Stage": "From Application to Completion" ▽ Having completed the stage of strengthening product and sales capabilities, and strengthening the foundation and infrastructure of the business, we will use the results and knowledge accumulated o
Slide 20: FY2/24: Policy by Business①
13. FY2/24: Policy by Business① A unified theme "Re-Born Final Stage": "From Application to Completion" ▽ Strengthening product appeal ・PB and JB expand their product lineup with higher-priced products one rank higher. ・Character products and influencer planning Improve the accuracy of demand foreca
Slide 21: FY2/24: Policy by Business②
13. FY2/24: Policy by Business② A unified theme "Re-Born Final Stage": "From Application to Completion" ▽ Strengthening product appeal ・Pursue a unique product lineup by brushing up JB’s wear and rebranding JB’s general merchandise. Chambre ・Develop gift products and new character products. ▽ Streng
Slide 22: FY2/24: Store Opening/Closing Plan
14. FY2/24: Store Opening/Closing Plan ▽ Our group plans to open 50 new stores, close 26 stores, with net increase of 24 stores. ▽ Increase the profitability of its stores by expanding relocation and FM format store openings. Relocation: 11 stores, fashion malls: 19 stores (10 facilities) End-FY2/24
Slide 23: FY2/24: Capital Investment Plan
15. FY2/24: Capital Investment Plan ▽ Annual capital expenditure of approx. 16.3 billion yen is planned, mainly in shop investment (opening new shops and renovation of existing shops). ▽ Land investment is planned to be about 6 billion yen mainly for store sites. ▽ The new Transfer Center in the Kan
Slide 24: Contents
Contents 1. FY2/23 Financial Results P3-15 2. FY2/24 Policy P17-23 3. Medium-term Management Plan 2024 Updated P25-27 4. Long-term Management Plan 2030 Policy P29-37 5. Approach to ESG Issues P39-43 24
Slide 25: Progress of Medium-term Management Plan 2024: Numerical Targets
16. Progress of Medium-term Management Plan 2024: Numerical Targets Update of numerical targets for FY2/24 ▽ Net sales: Revised upward from 595 billion yen to 628 billion yen (+ 33 billion yen) ▽ Operating income: Revised upward from 49.3 billion yen to 54.5 billion yen (+ 5.2 billion yen) 後日 コーポレート
Slide 26: Progress of Medium-term Management Plan 2024: Promotion of DX ①
16. Progress of Medium-term Management Plan 2024: Promotion of DX ① FY2021 Results FY2022 Results FY2023 Plan ▽ Launch of own online store ▽ Release of new application and ▽ Utilization of new apps launch of customer management ① Began identifying and analyzing ① Expand "Waku Waku" system EC member
Slide 27: Progress of Medium-term Management Plan 2024: Promotion of DX ②
16. Progress of Medium-term Management Plan 2024: Promotion of DX ② FY2021 Results FY2022 Results FY2023 Plan ▽ Started using tablets ▽ Expand use of tablets ▽ Expand use of tablets ① Introduction of an in-house app "Smart (introduced 2 units at all stores) ① "Smart sales floor plan" ① Utilize in-ho
Slide 28: Contents
Contents 1. FY2/23 Financial Results P3-15 2. FY2/24 Policy P17-23 3. Medium-term Management Plan 2024 Updated P25-27 4. Long-term Management Plan 2030 Policy P29-37 5. Approach to ESG Issues P39-43 28
Slide 29: Long-term vision (Shimamura's ideal state)
17．Long-Term and Medium-Term Management Plan 2030 −Long-term vision① （１）Long-term vision（ Shimamura’s ideal state） ■ The philosophy of the Company is to contribute to the enhancement of consumer life and lifestyle culture through its business. MANAGEMENT ■ It is also dedicated to maintaining high pr
Slide 30: Numerical Targets for FY2030
17．Long-Term and Medium-Term Management Plan 2030 −Long-term vision② （２）Numerical Targets for FY2030 Net sales Over Over 800 billion yen Net sales 800 billion yen Operating profit ratio 10.0% Gross profit ratio 35.0% Net sales 628 billion yen Operating profit SG＆A Net sales ratio 536.6 billion yen e
Slide 31: Three core measures and capital policy
17．Long-Term and Medium-Term Management Plan 2030−Policy （１）Three core measures and capital policy Three measures for realizing the long-term vision Reinforcement of the business base Growth strategies Initiatives to solve ESG issues and foundations ■ Business portfolio reconstruction ■ HR strategy
Slide 32: Growth Strategy
17．Long-Term and Medium-Term Management Plan 2030−Policy （２）Growth strategies Business portfolio reconstruction FY 2/2021 (Past) FY 2/2030 (Future) To be fostered Driving growth To be fostered Driving growth High High Growth potential Growth potential New business Growth Strategy To be reconstructed
Slide 33: Three core measures and capital policy
17．Long-Term and Medium-Term Management Plan 2030−Policy （３）Three core measures and capital policy Three measures for realizing the long-term vision Reinforcement of the business base Growth strategies Initiatives to solve ESG issues and foundations ■ Business portfolio reconstruction ■ HR strategy
Slide 34: Capital policy: Managerial resources
17．Long-Term and Medium-Term Management Plan 2030−Policy （４）Capital policy Basic Policy ■The Shimamura Group will work toward continuous improvement of performance through proactive investment for growth while ensuring stable financial foundations. ■Return to shareholders is generally provided in di
Slide 35: Capital policy: Growth investment
17．Long-Term and Medium-Term Management Plan 2030−Policy （４）Capital policy Approach to growth investment ■The Shimamura Group will expand investments in order to achieve continuous growth. ■We will work toward improving performance and contributing to all stakeholders by elevating the quality of sto
Slide 36: Capital policy: Shareholder returns
17．Long-Term and Medium-Term Management Plan 2030−Policy （４）Capital policy Approach to shareholder returns ■ The basis lies in continuous increase of dividends by elevating performance every term and stable return to shareholders. ■ We will ensure stable return even in event of temporary performance
Slide 37: Capital policy: Internal reserves
17．Long-Term and Medium-Term Management Plan 2030−Policy （４）Capital policy Approach to internal reserves ■ The Shimamura Group will maintain sufficient funds on hand for flexible response in regard to M&A, alliances, investment in land, etc. in addition to preparation for risk such as an economic re
Slide 38: Contents
Contents 1. FY2/23 Financial Results P3-15 2. FY2/24 Policy P17-23 3. Medium-term Management Plan 2024 Updated P25-27 4. Long-term Management Plan 2030 Policy P29-37 5. Approach to ESG Issues P39-43 38
Slide 39: Approach to ESG Issues - FY2022 Results ①
18. Approach to ESG Issues -FY2022 Results ① FY2022 Results (Environment) ▽ Creation of "Shima-Eco" logo. Further promotion of environmental initiatives and information dissemination. ▽ Increased the ratio of sustainable products to 32.7%. Branding with flyers and video sales promotions. ▽ Fully cyc
Slide 40: Approach to ESG Issues - FY2022 Results ②
18. Approach to ESG Issues -FY2022 Results ② FY2022 Results (Social) ▽ Ratio of female managers Increased to 15.0%. "Expand of training for store manager candidates and B.mgr candidates" "Expansion of regional explanatory meetings", "expansion of employment support measures", and "utilization of opi
Slide 41: Approach to ESG Issues - FY2022 Results ③
18. Approach to ESG Issues -FY2022 Results ③ FY2022 Results (Governance) ▽ Term of office of directors: 2 years: Reduced to 1 year. Clarified management responsibilities for the fiscal year. ▽ Number of outside directors: Increased from 2 to 3. ・Ratio of the Outside Directors: Improved from 33.3% to
Slide 42: Approach to ESG Issues - FY2023 Initiatives
18. Approach to ESG Issues -FY2023 Initiatives FY2023 Initiatives *CoC: Code of Conduct ▽ Further strengthen the check system at production sites in line with the "Supplier CoC. Environment: Establish and operate a specific checking system/Human rights: Continue and strengthen compliance with CoC ▽
Slide 43: Progress of Medium-Term Management Plan 2024
18. Approach to ESG Issues -Progress of Medium-Term Management Plan 2024 Progress of Medium-term Plan [Environment] [Environment] [Environment] Product disposal Sustainable product purchase Percentage of hunger rate recycling Feb. 2023 Result: Feb. 2023 Result: Feb. 2023 Result: Zero 32％ 52％ (Feb. 2
Slide 44: Information Disclosure
19. Information Disclosure Financial Results (disclosed on the corporate website) ▽ Financial Results Presentation (with comments) ...Tuesday, April 4 ▽ Summary of Financial Results (English version) ...Tuesday, April 4 ▽ Summary of Q&A Session ... Wednesday, April 5 ▽ Financial Results Presentation
Slide 45: Cautionary Statement Regarding Forward-Looking Statements, etc.
Cautionary Statement Regarding Forward-Looking Statements, etc. The forward-looking statements, including business forecasts, contained in this document are based on judgments made in accordance with information available at the time of this document's release and are subject to a number of uncertai